The Board of Trustees, Laborers Health and Welfare Fund for Northern California v. Garrison Demolition and Engineering, Inc.

District Court, N.D. California·Decided September 2, 2025·No. 3:25-cv-02878·Unknown

Opinion

THE BOARD OF TRUSTEES, Case No. 25-cv-02878-TLT (LJC) LABORERS HEALTH AND WELFARE ORDER TO SHOW CAUSE WHY Plaintiff, MOTION FOR DEFAULT JUDGMENT SHOULD NOT BE DENIED IN PART v. Re: Dkt. No. 22 ENGINEERING, INC., Defendant. Plaintiffs, the Board of Trustees of four union fringe benefit funds, bring this action under the Employee Retirement Income Security Act of 1974 (ERISA) to collect delinquent contributions owed by Defendant Garrison Demolition and Engineering, Inc. (Garrison). The presiding district judge, the Honorable Trina Thompson, has referred Plaintiffs’ pending Motion for Default Judgment (ECF No. 2) to the undersigned magistrate judge for a report and recommendation. ECF No. 24. Garrison has failed to file an answer, request that the default be set aside, or otherwise respond to or participate in this lawsuit. The undersigned held a hearing on September 2, 2025. For the reasons discussed below, Plaintiffs are ORDERED TO SHOW CAUSE why the Motion should not be denied in part. Plaintiffs shall file a response no later than September 23, 2025. After reviewing Plaintiffs’ response, the undersigned will prepare a report and recommendation on the Motion for review by Judge Thompson. / / A. Allegations of the Complaint Because courts take the factual allegations of a plaintiff’s complaint as true for the purpose of default judgment (except as to damages), this Report summarizes the allegations of Plaintiffs’ Complaint as if true. Plaintiffs are the trustees of Laborers Health and Welfare Trust Fund for Northern California, the Laborers Vacation-Holiday Trust Fund for Northern California, the Laborers Pension Trust Fund for Northern California, and the Laborers Training and Retraining Trust Fund for Northern California, and they bring this action on behalf of those funds. Compl. (ECF No. 1) ¶ 2. The trust funds are multi-employer employee benefit plans as defined by ERISA. Id. Garrison is an employer as defined by ERISA. Id. ¶ 3. At all relevant times, Garrison was a signatory to a collective bargaining agreement (CBA) with the Northern California District Council of Laborers. Id. ¶ 4. Specifically, Garrison signed a Memorandum Agreement (id. Ex. B) incorporating by reference the Laborers Master Agreement (id. Ex. A), which in turn incorporates the Trust Agreements (id. Ex. D) for each benefit fund at issue. Id. ¶ 4.1 “By said Agreements, [Garrison] promised that it would contribute and pay to Plaintiffs the hourly amounts required by the Agreements for each hour paid for or worked by any of its employees who performed any work covered by said Agreements.” Id. According to Plaintiffs, Garrison failed to comply with payment and reporting requirements under its agreements, and “has accrued delinquencies in fringe benefit contributions of at least $47,178.36; at least $7,199.02 in liquidated damages and interest on contributions reported but not paid; and at least $825.66 in liquidated damages and interest on contributions paid but paid late.” Id. ¶¶ 9, 11; see also id. Ex. F (calculation worksheets). Before filing this action in March of 2025, Plaintiffs sent a demand letter to Garrison on January 2, 2025 asserting Garrison’s delinquency. Id. ¶ 10 & Ex. E (ECF No. 1 at 201). That 1 Plaintiff also allege that Garrison signed a “Letter regarding [the] Master Agreement.” Compl. ¶ 4 & Ex. C. That letter revoked the authority of United Contractors (UCON) to represent letter stated a somewhat lower value of liquidated damages and a very slightly lower value of delinquent contributions. Id. Plaintiffs had previously sent a series of letters on June 25, September 30, and December 13, 2024, identifying delinquent reports or contributions. Id. Ex. E (ECF No. 1 at 203–06). Plaintiffs’ Complaint seeks delinquent fringe benefit contributions, actual damages, interest, liquidated damages, attorneys’ fees, costs of suit, and injunctive relief requiring timely submission of contribution reports and contributions going forward. Id. at 5–6 (Prayer for Relief). B. Motion and Supporting Evidence Plaintiffs move for default judgment, arguing that they are entitled to relief under the standard of Eitel v. McCool, 782 F.2d 1470 (9th Cir. 1986), based on Garrison’s failure to appear and defend this action. See generally ECF No. 22. Plaintiffs seek “$47,178.36 in fringe benefit contributions of [sic]; $10,029.70 in liquidated damages and interest on contributions reported but not paid; and $825.66 in liquidated damages and interest on contributions paid but paid late. ECF No. 22-3 (Proposed Order) at 3. Plaintiffs also seek attorneys’ fees totaling $8,226.50, costs totaling $1,559.04, and an injunction requiring Garrison “to timely submit all required monthly contribution reports and contributions due and owing.” Id. Plaintiffs rely on a declaration by Michelle Lauziere, the Director of Employer Services for the Laborers Funds Administrative Office of Northern California, Inc., to explain the agreements at issue and the damages Plaintiffs seek. ECF No. 22-1. Plaintiffs’ counsel Norey Navarro offers a declaration to support Plaintiffs’ requests for attorneys’ fees and costs. ECF No. 22-2. A court may enter default judgment on a motion by a plaintiff after the clerk has a entered a defendant’s default. Fed. R. Civ. P. 55(b)(2). After considering threshold issues of jurisdiction and service of process, courts consider the following factors in exercising their discretion to grant or deny default judgment:

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The Board of Trustees, Laborers Health and Welfare Fund for Northern California v. Garrison Demolition and Engineering, Inc., (N.D. Cal. 2025).

The Board of Trustees, Laborers Health and Welfare Fund for Northern California v. Garrison Demolition and Engineering, Inc. (The Board of Trustees, Laborers Health and Welfare Fund for Northern California v. Garrison Demolition and Engineering, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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